What is an old customer worth? - Profit 911 Business Consulting

What is an old customer worth?

    How to Keep the Customer Dry Erase Board TIps Techniques

    A lot of my tips involve strategy for getting new customers but that is not always the best use of your time. This is only assuming you have done all you can to keep your existing customers loyal first.

    The initial acquisition of the client is one of the most expensive parts of your business, but keeping a customer happy should be very cheap in comparison.

    I just encountered the exact opposite last week which will illustrate the point.

    In my event business, we have fuel accounts and cards with BP and Shell and have them accessible for our staff driving company vehicles. At some point BP snuck one by me and “upgraded” our card to one bearing the MasterCard logo. Actually, they made it so we have two open accounts. This caused confusion for the bookkeeper for several months until we actually figured out what was going on and pulled the MC branded ones out of service. The next month, we received at statement for $3 with a “misc fee” charged by them.

    After a few phone calls it was established that this was a paper statement fee and disclosed in some fine print somewhere. No problem, I offered to switch to e-statements and asked them to credit the fee back to me as a courtesy. Well, no go. The customer service agent held firm to the $3 fee and wouldn’t budge. No problem, I paid the $3, closed both accounts, and have banned my staff from using BP stations.

    I was kind on the phone and $3 would have kept me as a customer. I actually have the research that is costs around $80 to acquire a new charge customer. Do the math. A dumb company with dumb policies, and careless customer service reps lost my account and more importantly cost the marketing department $80 to replace me.

    Seriously, focus on your current client experience first before you seek massive growth in your own business. It is the cheapest thing you can do, the quickest to fix and the most profitable.

    Best wishes,
    Justin Miller
    Chief Strategist
    Profit 911 Consulting